Box Hill Systems Corp says it has completed its acquisition of fellow storage company Artecon Inc. The deal was handled as a tax-free stock swap that will be accounted for as a pooling of interests. The combined company will now be called Dot Hill Systems Corp, and began trading under the ticker symbol HIL yesterday on the New York Stock Exchange. Under the previously- announced terms of the deal, 8.79 million new shares of Dot Hill common stock were issued to Artecon shareholders, valuing the deal at $58.8m based on Tuesday’s closing price of $6.6875.
Philip Black, chief executive of Box Hill, and James Lambert, his counterpart at Artecon, will serve jointly as co-CEOs of Dot Hill. Black will concentrate on international operations and Lambert on domestic. The company says it will record unspecified charges related to the merger in the third quarter of the calendar year. Dot Hill’s headquarters and primary manufacturing facility will be located in Carlsbad, California but it will maintain significant operations – including research and development, sales, customer service and technical support – in New York as well.
